Rising Costs and Mounting Regulatory Concerns Weigh On Chemical Manufacturers Despite Gains in the U.S. During the First Half of 2024 - American Chemistry Council

U.S. chemical manufacturers report their company’s activity level overall (e.g., sales, production, output) continued to improve in the second quarter (Q2) of 2024, according to latest findings from the American Chemistry Council’s (ACC) Chemical Manufacturing Economic Sentiment Index (ESI). While chemical manufacturers’ sentiment around the state of the global economy deteriorated in Q2, their assessment of the U.S. economy improved. Chemical manufacturers expect improvement in U.S. economic conditions over the second half of 2024 and companies expect the global economy to deteriorate.

“Demand for chemicals in the U.S. continued to improve which helped lift production and stabilize inventories during Q2,” said Emily Sanchez, Director for Economics and Data Analytics at ACC. “Companies expressed concerns about rising costs on the labor and transportation front and increasing level of regulatory burden as well as a worrisome outlook for the global economy.”

The ESI provides quarterly insights from chemical companies engaged in nearly every aspect of the manufacturing sector and the U.S. economy. This latest report builds on over six quarters of data from Q1 2023 to Q2 2024. You can view the complete findings here.

The American Chemistry Council’s mission is to advocate for the people, policy, and products of chemistry that make the United States the global leader in innovation and manufacturing. To achieve this, we: Champion science-based policy solutions across all levels of government; Drive continuous performance improvement to protect employees and communities through Responsible Care®; Foster the development of sustainability practices throughout ACC member companies; and Communicate authentically with communities about challenges and solutions for a safer, healthier and more sustainable way of life. Our vision is a world made better by chemistry, where people live happier, healthier, and more prosperous lives, safely and sustainably—for generations to come.

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